A Study On Capital Chain Balance For Real Estate Companies In China

Capital is the blood of real estate development. Without adequate capital supporting for real estate companies, their projects will be faced with embarrassing. Especially, those great projects whose investment is up to more than millions dollar will fail to meet the need of market development when lacking of capital supporting of banks, banking consortium, or fiscal revenue. For real estate projects, it is very important to make a detailed planning over project financing in advance. As well known, impossible is that those top strongest real estate companies in the world implement their projects by their self-capital completely. Great commercial projects such Beijing Huacheng, Shanghai Zhengda Plaza, can not be delivered to clients on schedule partly due to capital chain. Capital issues will be grown up into the core problems of real estate market. As a result, how to solve the problems to achieve an integrated capital chain is vital for real estate companies to develop. This thesis analyzes the characteristic of capital chain for China's real estate companies, and point out the importance of capital chain. Basing on descriptions of current capital chain operations, the thesis divides the capital chain into three phases, namely capital financing, capital use and capital returns; thus, finds out the substantial problems of it from macro-micro respects. Finally, the thesis sets forth suggestions for building up a complete capital chain for China's real estate companies by making reference to some successful projects development and management model of real estate companies home and abroad. The outcome of the thesis is helpful for those real estate companies which encounter capital problems.The thesis also attaches its importance to suggest establishing "Standardization Model"(SM) in some designated real estate projects, and thus apply SM to all real estate projects in China step by step. In fact, SM helps to shorten building schedule, decreasing building cost, and improve real estate development efficiency. To conclude, SM is vital for good capital chain circle and developing capital chain for real estate companies in China.